TORONTO, ONTARIO--(Marketwired - April 28, 2014) - Building on its commitment to limit its use of convertible securities, InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) has entered into and closed a credit agreement with KingSett Real Estate Growth LP No. 5 ("KingSett") for a $50 million secured term loan facility (the "Term Loan"). Proceeds are to be used for general corporate purposes and the repayment of convertible debentures, including the Series C 5.85% convertible debentures due August 1, 2014.

KingSett has also provided InnVest with an option to draw an additional $50 million secured non-revolving stand-by liquidity facility (the "Liquidity Facility") for general corporate purposes. The term of the Term Loan and the Liquidity Facility (if drawn) expires in May 2018. Annual interest payments are expected to include cash payments of 5.75% and InnVest units equivalent to 3% (3.75% for the Liquidity Facility, if drawn).

As part of its strategic partnership with InnVest, KingSett has agreed to take its customary upfront fees associated with the transaction in InnVest units.

All units issuable in connection with the Term Loan and the Liquidity Facility will be issued at a price equal to the five day volume-weighted average price of such units on the Toronto Stock Exchange (the "TSX") immediately preceding the date of issuance. The TSX has conditionally approved the issuance of units to KingSett in accordance with the terms of the credit agreement, subject to customary conditions.

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including InnVest's intended use of the proceeds of the Term Loan, are forward-looking statements. These forward-looking statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are InnVest's capital requirements and available sources of funds. These and other factors are discussed in InnVest's annual information form for the year ended December 31, 2013, which is available at www.sedar.com. InnVest disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

Trust Profile

InnVest is an unincorporated open-ended real estate investment trust which owns a portfolio of 124 hotels across Canada representing approximately 15,500 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.

InnVest's units and convertible debentures trade on the TSX under the symbols INN.UN, INN.DB.C, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.